My latest Financial Post article discusses tax reform and the importance to improve how Canada develops tax policy:
“One of the things I enjoy is hanging out with tax geeks like me who have a similar passion to see Canada’s tax system improved.
Last week, I attended the Canadian Tax Foundation’s Tax Policy Symposium in Toronto, which was attended by roughly 100 in-person tax practitioners, academics and government bureaucrats who work in the tax arena…
There were no breakthrough moments or new ideas presented, but there were good reminders that Canada has a lot of room to do better in developing tax policy. And there certainly is an interest in tax reform, but there’s lots of debate on how that should be carried out.
As usual, some of the predictable warnings showed up: “Be careful what you wish for on tax reform…it might just be a way to raise new tax revenues,” and “Tax practitioners shouldn’t be involved in tax reform or the development of tax policy since they are inherently biased.”
Let’s just say I don’t buy the gloomy warning about being careful what you wish for…
I obviously disagree with the sentiment that tax practitioners should not be involved in the development of tax policy. Despite those who think tax practitioners will always show their bias to the clients they serve, believe it or not, most tax practitioners want to share their frontline experience and offer suggestions for a better Canada…
Although I’m a purist and would relish the opportunity for Canada to do another Royal Commission on Taxation, it is debatable whether such a process is the best way to institute tax reform. In today’s political environment, four years of study is unrealistic. Any sort of tax reform would need to be much more politically expedient, given that politics and taxation policy are like good food and red wine — they are inextricably linked.
At a minimum, though, even if comprehensive tax reform is not in the immediate future, there are significant improvements that could be made to how new taxation policy is developed. There were good discussions at the symposium about how tax practitioners and other stakeholders could be brought into the development much earlier rather than when the policy is almost fully baked. I agree…
Overall, it is disappointing how little interest there is from the average Canadian in trying to appreciate the importance of good taxation policy. I get it — there are far more exciting things to follow, such as Taylor Swift’s tour schedule — but tax policy affects Canadians far more than any celebrity headline. When someone understands how taxation impacts their life in a material way, the engagement should be higher…
As investor John Ruffolo bluntly put it, “Tax policy does not stimulate prosperity; it only gets in the way.” He’s right, especially the mess that our current tax system is…
Good tax policy is required for good economic policy. Right now, Canada has neither.”
